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The FaZe crypto scam is currently all the rage in the community and is one of the hottest topics on the circuit.
Following this entire ordeal, FaZe Clan has decided to part ways with Frazier "Kay" Khattri, a noted streamer and influencer from the organization. The organization has also suspended Jarvi "Jarvis" Khattri, Nikan "Nikan" Nadim, and Jakob "Teeqo."
These figures were involved in the so-called "pump and dump" scheme that made up the FaZe crypto scam.
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What exactly is the FaZe crypto scam?
It has been a trend for a while now to get influencers and streamers to promote various forms of cryptocurrencies. That is precisely what the "pump and dump" scheme is.
Given its stature, a lot of people have fallen prey to the FaZe crypto scam.
Influencers promote a specific cryptocurrency, causing its price to hike hugely. Following this, they then sell a large amount of this cryptocurrency, earning a considerable amount and ultimately causing the price of this alternate currency to go downhill.
FaZe Kay and FaZe Banks were paid to promote the cryptocurrency "BankSocial." In a now-deleted tweet, the latter had said:
"This is a project I f**k with heavily and truly believe it's the next one to pop. $10,000 winner chosen at random in 24 hours. Good luck, you sexy f**ks. #BSOCIAL (not financial advice lol)."
However, that was the only promotion he did for BankSocial since he backed out of the promotion contract because he will not be paid BankSocial coins. However, Kay still stood behind this product and hyped up the alternate currency even further, saying that he was up twice the amount he had invested.
Now, here is why this is a FaZe crypto "scam." The "pump and dump" model follows the same plan and ends the same way, i.e., with the cryptocurrency price kissing the carpet. However, impressionable viewers are moved by the promotions and end up investing in this recklessly, causing financial burnout.
FaZe Banks, though, came clean with the entire FaZe crypto scam as a reply to this YT video by CoffeeZilla. It talks about members of the organization, including Teeqo, Jarvis, and Nikan (the prominent faces of the FaZe crypto scam at the moment), pumping and dumping yet another crypto coin known as "savethekids.io."
Subsequently, even Kay followed suit and made a statement on Twitter about his regret at being a part of the FaZe crypto scam.
The FaZe crypto scam is only one of the many such cryptocurrency promotions that have led to disaster. While influencers should think through the product they are promoting, the fan community should also exercise caution before jumping the gun with something like this.
